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APC Action Plan 2010/15 – Issue 04 of 32

AUSTRALIAN PACKAGING COVENANT

STIHL PTY LTD

July 2010 - June 2015 ACTION PLAN

STIHL Offices & Distribution STIHL Offices & Distribution STIHL Offices & Distribution STIHL Offices & Distribution

Centre in Knoxfield, VictoriaCentre in Knoxfield, VictoriaCentre in Knoxfield, VictoriaCentre in Knoxfield, Victoria


Table of Contents

Page

Executive Summary 3

Managing Our Environment 4

Commitments 4

Introduction to STIHL – Company History 5

STIHL Pty Ltd Australia 7

Brands Owned by STIHL 8

STIHL Pty Ltd’s Position in Supply Chain 9

STIHL Pty Ltd Packaging Material Formats 11

Covenant Contact Officer 14

Environment 14

Action Plan 15

Action Plan Summary Table 16

Sustainable Packaging Plan 19

Summary Considerations 20

Demonstrated Implementation of Guidelines 20


Executive Summary:

STIHL Pty Ltd holds a major position in the worldwide distribution of STIHL forestry industry, landscaping and garden maintenance power equipment products.

With the environmental extremes encountered across Australia, New Zealand and the Pacific Islands, our wide range of chainsaws, brush-cutters, blowers, concrete cutters, hedge-trimmers, vacuum cleaners, pole-pruners and pesticide sprayers, etc are ideally suited to cope with these harsh situations that continually confront our unique customer-base.

As bulk container shipments are used for the worldwide distribution of STIHL equipment, our product packaging may be kept to the absolute minimum using the most basic materials. Due to the careful design of product cartons by our Packaging Design Team located in Waiblingen, Germany, product movement is effectively restrained whilst providing the necessary protection against damage.

Each new STIHL product has a unique packing carton that the Packaging Team design and produce during the product’s development.

This eliminates the need for additional packing materials such as polystyrene, cardboard, plastic bubble-wrap, etc.

These well-proven product packaging methods have been adopted throughout the STIHL organisation for many years and will therefore remain in use well into the future.

However, our organisation’s interests are intrinsically linked to the preservation of the environment; we are continually seeking further opportunities for improvement which is proudly underpinned by our signatory status with the Australian Packaging Covenant.

We therefore look forward to a mutually rewarding relationship with the APC over the forthcoming years.

Walter RosoWalter RosoWalter RosoWalter Roso Michael Biggins

Dr. Walter Roso Michael Biggins

Managing Director – STIHL Pty Ltd Commercial Manager – STIHL Pty Ltd


Managing Our Environment:

Over the past several years, STIHL has made significant investments in research and development to address our environmental footprint. STIHL is dedicated to developing products that are environmentally responsible. We are proud that our product line features some of the best available technologies and some of the cleanest running outdoor power equipment available today. STIHL will continue to work toward socially responsible environmental stewardship both in operation and manufacture. We are also working to increase environmental awareness in our vendors and business partners.

After all, taking care of nature is the very basis of our operations.

"...we can all work together to keep our country clean, green and beautiful."

STIHL partners with agencies and organisations that encourage the responsible use of natural resources, promote sustainable growth woodlands, and support the continuing of our future farmers and agribusiness professionals.

A long-term proponent of responsible forest management, STIHL believes we can all work together to keep our country clean, green and beautiful.

Energy Efficient Outdoor Power Equipment:

As a manufacturer of chain saws and power tools for gardening and landscaping, STIHL is reliant on an intact, sustainable environment and is thus committed to operate its business in such a way that harmful effects on the environment are reduced as far as possible.

We’re committed to developing powerful, fuel-efficient outdoor power equipment while using production practices that are environmentally responsible.

Commitments:

STIHL Pty Ltd expresses its commitment to informed conservation and environmental policies by:

� Continually reviewing product design and manufacturing methods, packaging requirements and distribution methods against international best practice to


recognise opportunity to minimise environmental impacts at all levels in the business.

� Sponsorship of tree-planting and other environmental projects by the Australian Trust for Conservation Volunteers, both through direct financial grants and in-kind provision of equipment and instruction of its use.

� Sponsorship of a Tree Farmer of the Year Award – providing the prize for the farmer considered to have made the most significant contribution to tree cultivation and management for the year.

� Giving practical support to official forest industry training teams throughout Australia, thus contributing to the maintenance of safe and responsible working practices in Australian forests.

STIHL Pty Ltd will consider providing support to any project promoting conservation and management through agro-forestry or other related land-care activities.

Introduction to the STIHL Organisation

Company history:

Andreas Stihl AG & Company is a manufacturer of chainsaws and other handheld power equipment including hedge-trimmers, brush-cutters, blowers, pressure-washers and vacuum cleaners. Their headquarters are in Waiblingen, Baden-Württemberg near Stuttgart.

The company was founded in 1926 by Andreas Stihl, an important innovator in

early chain saw production. The company is the world's best selling brand of chain saws and is the only chain saw manufacturer to make its own saw chains and guide bars. Today, Andreas Stihl AG is a privately held company owned by the descendants of Andreas Stihl.

The Company's founder Andreas Stihl was born in Zurich in 1896


When Andreas Stihl designed and hand built the first chain saw back in 1926, it was electric powered, and weighed in at 140 pounds. The STIHL name soon became popular, and also became synonymous with professional grade chain saws and would soon become the number one selling chain saw Company in the entire world, a title that the company retains to this day.

STIHL growth was slow initially, as the chainsaws hit the market

about the same time as the Great Depression; with manpower cheap and old two-man saws well-proven, there was no need for power saws. The early chainsaws were very heavy, and often needed two men to operate them.

Some outfits had a wheeled generator which had a power cord to run to the electric saw. STIHL chainsaws went into service with the Wehrmacht, particularly in Eastern Europe and Russia, where timber was cut for defensive positions.

After the war, the availability of cheap, strong aluminum, better designs and more powerful engines meant that the STIHL chainsaw came into its own.

Historically, STIHL's products were Chainsaw based, with a farmer and professional bias. Over the last fifteen years, product developed for the domestic market has been introduced, in recognition of the need to grow the company by expanding the product range and broadening market orientation.

STIHL today, is the world's leading brand of chainsaws and is a market leader in the outdoor power equipment industry. It owes this achievement to three main factors:

1. Strict adherence to product quality standards Innovative product design based on the needs of the market.

2. Heavy emphasis on reliable spare parts; and


STIHL MS 170

3. Service back-up through a Servicing Dealer Network.

Expansion:

In the mid-1970s STIHL expanded the company by building manufacturing plants in Brazil and in the United States. Much of the increased demand came from the construction and landscaping markets.

Along with the professional markets, STIHL designed a number of homeowner use equipment, like blowers, line trimmers, edgers and chain saws. In 2008, the newest STIHL production facility is a state-of-the art plant located in Qingdao, China.

STIHL Incorporated:

STIHL Incorporated is the American branch of STIHL. The company bought land in Virginia Beach, VA, and began construction of the facilities in 1974. Along with the manufacturing side of the company, there are also warehouses and administration buildings in the complex.

As of 2008, the complex stretches over 100 acres (0.40 km2), with over 1,000,000 square feet (93,000 m2) of manufacturing and warehouse space.

Today, the STIHL Group employs more than 10,000 people world-wide manufacturing STIHL and Viking brand products in plants in Germany, Switzerland, United States, Brazil and China, as well as 34 marketing and distribution subsidiaries.

STIHL Pty Ltd Australia:

STIHL Pty Ltd became part of the STIHL network in 1971, with responsibility for marketing and distribution in Australia and the Pacific Islands.

The Central Distribution Centre in Knoxfield, Melbourne supplies product to State warehouses in Brisbane, Queensland and Perth, Western Australia using the most

modern computerised storage and retrieval systems available today.

This includes barcode verification of incoming stock, fully automated storage and computer controlled picking of orders.

The headquarters of STIHL Pty Ltd are located in Victoria with Inter-State offices in NSW, QLD, SA and WA.


STIHL Pty Ltd was the first subsidiary company established by the STIHL Group outside Europe, and is currently the sixth largest in annual turnover employing approx. one hundred staff.

STIHL Pty Ltd distributes its products through a network of 430 Specialist Dealers throughout rural and metropolitan markets.

In the main, these are retail outlets with a technical / mechanical orientation to ensure consistently effective service back-up to the STIHL product range.

To buy STIHL equipment is to buy a total package of product and service. The STIHL range of chainsaws and garden care products is only sold through Specialist Dealers - who not only carry products, but also spare parts and accessories, and have workshop staff trained by STIHL technicians. In this way, consistent, expert service is built into every product sold. It is this commitment to the customer and the product in both pre-delivery and after-sales service that positions STIHL so strongly in the market.

Each State office employs Territory Managers, who are the vital link between STIHL Pty Ltd and our Specialist Dealers. Each Territory Manager services approximately 40 Dealers and in some regions, this can involve travelling thousands of kilometres to ensure that Dealers have the latest stock, information and selling aids. Territory Managers also assist Dealers prepare product demonstrations, organise displays at local shows and assist with local advertising and public relations.

Brands owned by STIHL Pty Ltd:

The Melbourne Australia headquarters of STIHL currently own the registered Brand name; STIHL as indicated below: -

The STIHL product portfolio includes Brush-cutters, Line-trimmers, Blowers, Hedge-trimmers, Concrete Cutters, Earth Augers, High Pressure Cleaners, safety clothing, and various accessory items.


STIHL Pty Ltd’s Position in the Supply Chain:

All first-tier product packaging (product cartons) are designed by our parent Plant in Germany and produced in accordance with strict STIHL standards by the product manufacturing source.

The cartons are designed such that no further packing materials are necessary to restrain the product within the carton. The use of minimal packaging materials has been a STIHL tradition for many years. All materials used to transport STIHL equipment (cardboard and plastic wrapping) are fully recyclable.

As each STIHL product requires inspection and a safety demonstration prior to hand-over to the end user, the product packaging is removed and retained by one of our 400 plus Dealers.

STIHL Manufacturing Source (USA, Europe, Asia)

STIHL Network of 400 + Specialist Dealers

STIHL STIHL STIHL STIHL STIHL STIHL STIHL

Consumers / End Users


Palletised STIHL products unloaded from shipping container wrapped in plastic

Protective plastic wrap removed – placed in baler for

recycling

Products stored in warehouse in ‘as received’ packaging

Re-wrapped Dealer shipments awaiting

despatch


STIHL Pty Ltd Packaging Material Formats:

STIHL Pty Ltd imports its equipment from one of several worldwide locations; therefore decisions regarding the type and quantity of packaging used are typically outside of the Australian Distribution Centre’s control.

Product is received as it was packaged at the manufacturing source, within cardboard packaging. STIHL products are typically packaged in cardboard cartons with a small polythene bag to contain a Users Manual, Warranty Card and essential tools.

When an order for spare parts is received the items are picked and consolidated into one package for supply to the respective Dealer. Depending on the nature and number of items in the order they may be packed into a cardboard skid or in the case of very small items, a padded post bag.

All items of a recyclable nature used within our business are sent for recycling with separate bins provided for paper/cardboard, toner cartridges, plastics and steel

The primary difficulty encountered in recycling our packaging materials by our numerous Dealerships is with the lack of either council or privately operated materials recovery facilities in the more rural areas where a large proportion of our customer-base is located.

Our rural communities are currently being encouraged by local councils to take all hard materials to their respective landfill sites. This is of course in complete contradiction to our organisation’s environmental policies, but we are unable to influence.

Governmental controls over local councils such as those currently implemented by the Australian Packaging Covenant over the various manufacturing and distribution business would of tremendous advantage in this critical area of the packaging disposition chain.

Within the central and suburban areas of our cities, there are typically few problems for our Specialist Dealers to maintain our organisation’s environmental policy by ensuring that both cardboard and plastics are either collected at their shops by materials recyclers or otherwise taken to an appropriate recycle centre.


Typical 2-colour STIHL product carton

Incoming goods comprise a cardboard insert layer which is removed and

recycled at STIHL Pty Ltd

Product cartons are “engineered” to effectively restrain product without any requirement for further

packing materials

Chainsaw movement is prevented due to specially designed ‘cut-outs’ in carton


STIHL Pty Ltd is the distribution centre for all overseas manufactured products that are sent to Dealers within Australia and the Pacific Islands.

Major equipment items are received and stored at the warehouse in primary cardboard cartons that are typically manufactured from recycled paper and card materials.

Small items such as spare parts and accessories are also received in cardboard cartons. Each item may be individually packaged or loosely assembled as kits in either plastic bags or cardboard cartons.

Spare parts are stored in carousel storage or pallet racks as appropriate.

Goods received at the STIHL warehouse from overseas are typically wrapped in plastic film for general protection from the elements.

A single sheet of cardboard separates the layers of boxed items upon receipt.

This cardboard, together with cartons from other supplied goods are mechanically crushed at the Melbourne Warehouse and sent for recycling.

Our specialist Dealers unpack the goods from the cartons or other packaging used for transportation. STIHL Dealers are independent from the business (they are not franchised), therefore end users do not receive / are not supplied, with product packaging thus its circulation and hence disposition, is restricted to Specialist Dealers only.

Opportunities do exist for recycling of packaging materials by some of our more isolated Dealers which is incorporated within our current Action Plan.


Covenant Contact Officer:

• Primary Contact: - Mr Michael Biggins

• Position: - Commercial Manager

• Phone: - (03) 9215 6633

• Facsimile: - (03) 9215 6698

• Mobile: - 0400.138.801

• E-mail: - [email protected]

• Address: - 5 Kingston Park Court

Knoxfield

Victoria

3180

Environment:

STIHL Pty Ltd recognises and accepts its responsibilities as a good corporate citizen. The nature of the equipment STIHL manufactures and its use in the natural environment means operational safety and environmental considerations are ever-present. STIHL's concern for safety is paramount and it leads the world in developing safeguards for users and bystanders, as well as the environment in which we all live.

Environmental considerations have also influenced the design of STIHL products, to reduce noise and the risk of fire.

STIHL actively encourages the planting and cultivation of trees through sponsorship of agro-forestry and community tree-planting programs, while our engineers are constantly striving to produce safer and environmentally friendly products.

Products are developed and built with the best available technology to minimize the consumption of natural resources. STIHL is a world leader in the development of engine technology with a reduced environmental impact.


Action Plan:

The objective of the Used Packaging Action Plan for the period; July 2010 to June, 2015 is to minimise the impact of product packaging, materials and activities that may have a potential impact upon the environment.

This will be achieved through a consultative programme with our staff, suppliers and contractors to:

eliminate unnecessary packaging;

select packaging materials that have alternative uses without reprocessing;

use packaging materials which contain optimal proportions of recycled materials;

use packaging materials that are suitable for reprocessing into similar or alternative products;

recycle fluorescent light tubes;

recycle drink cans, bottles, cartons, etc;

recycle printer cartridges & consumables;

recycle plastic wrap, plastic strapping and hard plastic materials;

recycle all paper and cardboard packaging materials received into the STIHL warehouse and administration offices.

recycle damaged / unserviceable STIHL products

recycle CD’s / DVD’s

recycle polystyrene

compost food waste (bokashi system) from kitchens / lunchroom areas

APC Action Plan 2010-15 / Issue 04 of 32

Action Plan Summary Table

Covenant Performance Goals and KPI’s Actions Responsibility Baseline Data Target or Performance Goal

Timeline Action Year

Design

1). Design - Optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety

Both primary product packaging and secondary spares containment boxes for the current product range are already optimised as far as is practicable.

Primary packing – Worldwide product manufacturing sources

Use of current packaging provides the minimal material to protect products. However, improved technologies and processes are constantly subject to review in STIHL Germany.

No further packaging reduction possible at present. (Packaging designs are developed at STIHL Germany as the organisation’s product design and manufacturing centre)

October 2011 via Annual Report

KPI 1 – Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging.

The Sustainable Packaging Guidelines produced b the Australian Packaging Covenant has been provided to the product design team in STIHL Germany to compare the Australian requirements with those in current use throughout Europe.

100% of STIHL Pty Ltd packaging has been reviewed against the Sustainable Packaging Guidelines of 01 July, 2010

Gap analysis required to determine differences between STIHL Waiblingen, Packaging Design Specifications vs. Australian Packaging Covenant Sustainable Packaging Guidelines

October 2011 via Annual Report

Target 70% of Covenant signatories with documented policies and procedures for evaluating and procuring packaging using the SPG or equivalent.

As the specifications for all STIHL product packaging are developed in Germany to strict organisational requirements, the parameters described within the Australian Packaging Covenant Sustainable Packaging Guidelines would not have been used prior to 2010. However, documented STIHL Germany policies and procedures provide the mandatory Corporate guidelines.

Target 70% of Covenant signatories assessing 100% of new packaging and 50% of existing packaging against the guidelines.

The Australian Packaging Covenant Team at STIHL Pty Ltd in Melbourne, are currently awaiting advice from STIHL Germany on the difference between STIHL Packaging Guidelines and the APC Sustainable Packaging Guidelines.

Recycling

2). Recycling – The efficient collection and recycling of packaging

On-site packaging recycling processes have been in use at the current warehouse / distribution facility since 2004

Induction training of all staff includes the organisation’s recycling process - Debra Rowley, HR Manager

Recommence APC records for 2010 -11 Period

Overall waste to landfill reduction by 75% in 2010 - 11 period

31 October-11




KPI 3 – Proportion of signatories with on-site recovery systems for recycling used packaging

Maintain collection points for cardboard and Plastic (LDPE) Shrink wrap in Warehouse.

Darren Hargreaves – Warehouse Manager

Recommence APC records for 2010 -11 Period

Reduction in total waste to landfill by 75% - 80% in 2010 - 11 period

31 October-11 via Annual Report

KPI 4 – Proportion of signatories with a policy to buy products made from recycled packaging

All STIHL manufacturing sources procure recycled content packaging

Michael Biggins – Commercial Manager

Internal ‘buy recycled’ Policy for the procurement of all aftermarket products to be established.

“Buy Recycled” Policy to be prepared and implemented by October, 2012

31 October-11 via Annual Report

All Covenant signatories will have a formal, documented policy of buying recycled products or materials

STIHL Germany has documented policy and procedures for the procurement of recycled packaging


EMS Consultancy

OFI’s are possible to document similar requirements within Australia for locally sourced packaging.

Create internal (Melbourne) policy by October 2011

Product Stewardship

3). Product stewardship – a demonstrated commitment to product stewardship by the supply chain and other signatories

Liaise with suppliers (STIHL Manufacturing sources) when necessary to implement applicable improvement to maintain use of recycled / recyclable packaging.

Primary packing – Product manufacturing sources

Suppliers have already fulfilled necessary packaging requirements

Current processes to be maintained throughout 2010 – 2015

Review in 2015 unless new product types are introduced

KPI 6 – Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging.

Applicable processes are already in place within STIHL Germany for primary product packaging

Aftermarket packaging:


Andrew Dawson – Product Manager

Richard Datko - Marketing

A list of all aftermarket packaging suppliers is required.

Provision of local packaging suppliers contact details by 30 August, 2011

Results to be reported via October-11 Annual Report




Target 70% of Covenant signatories are implementing formal policies and procedures in working with others to improve design, procurement and recovery of packaging

Whilst the STIHL, Melbourne Offices and Warehouse have effective recycling policies, there is a need to cascade this responsibility throughout the network of 400 + Dealerships across Australia.

Michael Biggins: Commercial Manager

Quantity and locations of Dealers who are recycling packaging materials is currently unknown.

Collect data on recycling activities throughout STIHL Dealerships by end of 2012.

December 2012

Proportion of signatories demonstrating other product stewardship outcomes

Disposition procedures of packaging items within STIHL follow the preferred Waste Hierarchy principle wherever possible: i.e.

a) avoidance;

b) re-use;

c) re-cycling;

d) recovery of energy;

e) treatment;

f) containment;

g) disposal.

Other areas of the business that demonstrate STIHL’s product stewardship are as follows: -

• Unrepairable products recycled (all plastics & metals)

• CD’s / DVD’s recycled

• Polystyrene recycled

• Prescribed waste (lubricants) recycled

• Fluorescent light tubes recycled


Continue recycling practice – investigate opportunities for improvement

Review status of recycling programme at end September, 2011

30 Sept’ 2011

Target: Continuous reduction in the number of packaging items in litter

Check recycling facilities at all Dealerships


Unknown at present Data required from Dealers

December 2012


SUSTAINABLE PACKAGING PLAN – JULY 2010 to JUNE 2015

A sustainable packaging plan has been developed to ensure that all potential avenues for improvement in the design and disposition of STIHL Pty Ltd packaging have been investigated.

Company: STIHL Pty Ltd

Review reference: July, 2010 / June, 2015

Date: 30/10/10

Updated: 15/06/11

Contact: Michael Biggins – Commercial Manager

Contact details: Ph: (03) 9215 6633

Product / packaging description: Photographs: >

Product cartons are specially designed to ‘tailor-fit’ each product type that avoids the need for additional packaging materials.

A simple two (2) colour ink format is used throughout the world.

Existing or new packaging? Existing for all products Typical STIHL Product Carton Chainsaw Kit Carton

People involved in the review

Name: Position: Company: Rationale for involvement:

Michael Biggins Commercial Manager STIHL Pty Ltd Pivotal role in leading APC Team

Andrew Dawson Product Manager STIHL Pty Ltd Liaison with STIHL Germany

Darren Hargreaves Warehouse Manager STIHL Pty Ltd Packaging materials disposition

Richard Datko Aftermarket Products Purchasing and Marketing STIHL Pty Ltd Packaging materials procurement

Debra Rowley HR / OHSE Manager STIHL Pty Ltd Staff induction training


Summary Considerations:

Activities to undertake to improve sustainability of packaging format / category: Nil envisaged in the near to medium future (within 5 years)

Environmental benefits resulting from review: Further environmental (landfill reduction) initiatives from both STIHL Pty Ltd facilities to be introduced within 2011

Environmental impacts, risks and barriers: STIHL Pty Ltd packaging recycling chain breaks down throughout all rural areas due to lack of materials collection / recycling services.

Demonstrated Implementation of the Guidelines:

Consumer packaging Secondary packaging (used to bundle consumer product, e.g. shipper, shrink film)

Tertiary (used to bundle secondary packaging, e.g. pallet wrap, strapping)

Opportunities for Improvement

Audit Evidence (Records)

Minimise materials (source reduction)

1. Is the packaging necessary Yes – containment, protection, identification

Yes – product unitisation and protection

Yes – unitisation and transport stability

No unnecessary packaging used

APC site audit

2. Has the package been designed to use the minimum amount of material necessary to suit the required level of functionality?

Cardboard cartons and plastic wrap are removed by Specialist Dealer for product inspection, test and demonstration prior to hand-over to consumer

Boxed products wrapped in shrink-film to contain on pallets

Boxed products wrapped in shrink-film to contain on pallets

Nil – packaging and materials reduced to a minimum

APC site audit

- Minimum number of separate layers?

Yes Yes Yes Nil – unless new products are introduced

STIHL / Dealer audit

- Minimum packaging weight?

Already at minimum level for all product types

Already optimised – any further reduction would present risk of product damage in shipping

Minimised as far as practicable

Nil STIHL / Dealer audit

3. Are there any options to further reduce materials?

No further options available No further options available No further options available

None identified to date

STIHL Warehouse / Dealer audit






4. What is the likely impact of these options on functionality, product protection and consumer safety?

A STIHL specialist dealer will unpack, assemble and test the required product before handing over to the consumer.

Consumer receives assembled, fuelled and tested product from Dealer. Product packaging remains at the Dealer’s premises.

A STIHL consumer will only take his/her product from the Dealer. All packaging being retained by the Dealer

Consumer risks minimised as much as possible


5. Does the design of the package allow the product to be completely dispensed, i.e. to avoid product wastage?

Yes – all product parts are removed from the carton by a STIHL trained Specialist Dealer

Secondary packaging is removed by STIHL trained specialist Dealer

Tertiary packaging removed by STIHL trained Specialist Dealer

None identified ~ As the consumer does not dispense the product


Maximise water and energy efficiency

6. Have you and your suppliers taken steps to optimise the energy efficiency of production processes and distribution?

STIHL product cartons are produced in the country of product origin in strict compliance to directives specified by STIHL Germany

STIHL secondary packaging is produced in the country of product origin to STIHL (Germany) specifications

Tertiary packaging is produced in the country of product origin by use of identical (STIHL specified) highly-efficient equipment

Awaiting advice from STIHL Germany


7. Have you and your suppliers taken steps to optimise the water efficiency of production processes?

Cartons procured by STIHL are supplied by a proprietary cardboard manufacturer using recycled materials.

Investigations are currently in progress at the STIHL parent Plant in Germany on this topic


Waiting confirmation of investigative outcomes from STIHL Germany

No production processes take place at STIHL Pty Ltd

8. Have you considered using renewable energy for manufacturing, e.g. by purchasing a percentage of Green-Power?

Product packaging is produced in Europe, USA and Asia. Green power may be used but is currently unknown.



Consideration for potential use of Green-Power in management plan.

Manufacturing processes do not take place at STIHL Pty Ltd

Use recycled materials

9. What is the amount and percentage of recycled material?

(Specify source, i.e. pre- or post-consumer)

Pre-consumer: STIHL Manufacturing sources ensure product cartons are produced in their respective countries to identical standards specified by STIHL Germany.

Pre-consumer: We are currently waiting for information from STIHL Germany on the recycled content of spares skids and palletised product separators.

Pre-consumer: Pallet wrapping and plastic strapping is collected for recycling at the STIHL (Knoxfield) Warehouse

STIHL product packaging is minimised as far as practicable.

E-mail / Records from packaging sources






The Recycled Content of STIHL Product cartons is as follows: -

STIHL Germany Recycled content (approximate) 70-90%

STIHL USA Recycled content (approximate) 37-52%

STIHL Brazil Recycled content (approximate) 100%

STIHL Switzerland Recycled content (approximate) 50-90%

STIHL China Recycled content (approximate) 85-100%

“Bonus Chainsaw Kit” cartons are sourced locally. These are produced from Grade 530C cardboard which is 100% Recycled.

STIHL Bar & Cutter Lube cartons are also produced locally. We are waiting for information regarding the cardboard recycled content.

10. Could alternative formats or materials incorporate recycled material or offer a better environmental impact solution? If so, how much, and why were they not selected?

STIHL product packaging typically comprises a cardboard carton with a small plastic bag to contain the Owners Manual. Both materials are 100% recyclable.

The absolute minimum amount of secondary packaging is used by STIHL manufacturing sources to contain palletised loads.

Plastic pallet wrap and plastic strapping is collected at STIHL Pty Ltd warehouse for recycling

STIHL Germany has been requested to advise (%) amount of secondary packaging recycled content

The next revision of this Action Plan and/or STIHL Annual Report






11. Is it possible to use more post-consumer recycled material? If no, please explain the rationale.

Consumers of STIHL products do not typically receive any packaging

Packaging is removed by Specialist Dealers throughout the country.

Primary product packaging is retained by STIHL Dealer.

Aftermarket (tools & accessory packaging is 100% recyclable)

STIHL Pty Ltd or Dealer Audit

12. Have you discussed the use of recycled materials with your marketing department and identified any market concerns?

No market concerns have arisen to date.

Yes, inability for STIHL Dealers in rural areas to recycle plastic wrap / strapping materials

Yes, inability for STIHL Dealers in rural areas to recycle plastic wrap / strapping materials

APC is requested to mandate Rural Councils to install appropriate recycle centres by 2015


13. If a recycled content claim is made, is the minimum level of recycled content specified in accordance with AS/NZS 14021?

No recycled content claim is made



None identified to date.


Minimise hazards associated with potentially toxic and hazardous materials

14. What is the potential for and availability of materials derived from a renewable source?

Unknown at present Enquiries with STIHL Germany currently in progress

15. Are the renewable raw materials grown and harvested using sustainable farming or forestry practices?

Unknown at present Enquiries with STIHL Germany currently in progress

16. What is the potential for incorporating recyclable materials?

All cardboard and plastic materials currently used by STIHL Pty Ltd are recyclable All packaging materials used by STIHL are recyclable

Recycler’s Reports & Invoices

17. Describe your understanding on the extent to which the consumer packaging used is collected for recycling in the geographic area(s) where the product will be sold?

Refer Q34 – Design for recovery






18. Have you applied conventional and conservative risk management principles in the selection of substances for packaging applications (e.g. inks, pigments, stabilisers and adhesives)? This includes, where possible, elimination of toxic and hazardous substances or minimisation of such substances where their use is necessary.

Risk management principles for the selection of all STIHL packaging are implemented at product design stages by a specialist packaging design team within STIHL Headquarters in Germany.

Secondary packaging used to contain palletised STIHL products simply consists of one (1) layer of plain cardboard (See page 12) and clear plastic wrapping that is used to contain the stack of product cartons ~ there are no inks used in secondary packaging.

Tertiary packaging when used comprises plastic strapping which is used to secure individual cartons and stacks of cartons.

This strapping is 100% recyclable and is collected on-site at the Knoxfield warehouse.

STIHL Packaging materials are as simple as practically possible.

National (previous) and Australian Packaging Covenant Annual Report data

19. Does the packaging meet Australian and/or international standards in relation to the levels of potentially toxic and harmful substances? For example, the EU Packaging Directive specifies that the combined weight of heavy metals (mercury, lead, cadmium and hexavalent chromium) in a package or any of its components must not exceed 100ppm.

When subjected to their intended use, the packaging materials produced by Seyfert GmbH conform with the requirements of the German Food and Feed Code LFGB valid from 25.04.2006 Technical Standards Committee: 2125-44; revised by resolution of 26.04.2006 Federal Law Gazette (BGBI.) I p. 945; last amended by Article 12 of the law of 26.02.2008 Federal Law Gazette (BGBl.) l p. 215, with Directive 2002/72 EEC, EU regulation 1935 / 2004 Article 3 and with the German Food, Consumer Goods and Feed Code §30 and §31 and Directive 94/62 EC in the amended wording of Directive RL 2005/20 EC and the Assembly Bill (AB) 455 of 2003, section 679, in the amended wording of AB 2021, issue 2004, section 445.

Furthermore, our packaging materials conform with recommendation XXXVI “Papers, Boxes and Cardboards of Food Packaging” of the German Health Authority (BGA). We also confirm that our packaging materials are free of environmentally hazardous substances such as silicon, PVC, ortho-phenylphenol and fluorinated, migration-capable compounds or tensides. The adhesives used are manufactured without DIBP.

Neither in the corrugated cardboard produced by us or in the printing inks we use, are there any substances such as 4-methy benzophenone or benzophenone.

The heavy metal content of our packaging is below the required maximum contamination level of 100ppm as per EU Regulation 9462 EEC.

The PCP content of our packaging is <20 µg/kg, calculated using the HELP method and compliant with the PCP prohibition ordinance.

With regard to the Swiss Consumer Goods Regulations regarding the migration of mineral oil, we hereby notify you of the following:

The use of printing inks is regulated in section 8b – Article 26e to 26i (referred to as “packaging inks”). This requires that food packaging and food consumer goods may only be printed with printed inks that are solely composed of substances listed in Annexes 1 and 6 of the Regulations. The respective, listed migration values must not be exceeded.

These provisions do not apply, however, when:

Supplier documents






“Migration of the substances from the packaging inks into the foodstuff is impossible due to the nature of the consumer goods” (section 8b, art. 26e, sentence 2b)

Or

“The discharge of the substances or their emission in gaseous form is excluded” (section 8b, art. 26e, sentence 2c).

This also applies in the case of our transport packaging.

• All STIHL products use 2-stoke fuel, thus they do not have an oil sump. Power-heads are despatched from the factory dry, therefore no lubricants, grease, etc are present in shipped product packages.

• Bars and chains are packed separately in individual cartons. (See page 30)

Use materials from responsible suppliers

20. Are your raw materials sourced from suppliers who have documented environmental management systems?

STIHL manufacturing facilities typically operate with certified management systems comprising: ISO 9001 (Quality), ISO 14001 (Environmental) and OHSAS 18001 (Occupational Health & Safety).

This is currently no organisational requirement for worldwide product distribution centres such as STIHL Pty Ltd in Melbourne, Australia.

STIHL Germany only mandates product and packaging production sources to achieve ISO 14001 Environmental management system certification.

Local suppliers are exempt this requirement

Applicable STIHL and/or Certification body web-sites.

21. Do you give preference to suppliers that are signatories (if applicable) to the Covenant?

There are very few packaging suppliers to STIHL in Australia. e.g. Bonus Chainsaw Kit cartons, Castrol Australia etc. STIHL Pty Ltd would consider these as preferred suppliers should they become Covenant signatories and if mutually & commercially beneficial.

STIHL P/L Marketing Dept. to investigate advantages

Supplier audit / assessment report

22. Are you or your suppliers engaged in a sustainability program such as the PACIA / EPA Victoria Sustainability Leadership Framework?

Not applicable as primary product packaging is sourced from overseas STIHL manufacturing centres

This area could provide the potential for further investigations into total packaging stewardship throughout the STIHL Australia distribution network.

Confirmation from local aftermarket packaging material suppliers.

On APC Team agenda for follow-up review

Supplier audit reports






Design for transport

23. Can the distribution packaging be reduced or eliminated through redesign of the primary or secondary package, or vice versa?

No, the packaging in current use is minimised as far as practicable Nil Sighted audit evidence

24. Are you currently using shelf ready/retail ready packaging? Is it being used effectively? If it is not being used effectively has this been communicated to others in the supply chain?

No, this does not apply to STIHL Dealer distribution N/a Sighted audit evidence

25. Have you used light weighting (source reduction) strategies in your package design? Have you considered the overall environmental impact of light-weighting, e.g. does your design for transport have a negative impact on the recyclability of the used packaging?

STIHL product & spares packaging is as basic as can possibly be achieved

N/a Sighted audit evidence

26. Have you designed your consumer packaging to maximise the efficiency of secondary or tertiary packaging, e.g. for example in pallet configuration?

Yes – the number of packs in each shipment have been optimised to meet both Dealer requirements and pallet efficiency

Nil Transport / shipment records

27. Are you fully utilising the transport options such as pallet efficiency and truck height? Are there any efficiencies that can be achieved?

Yes – as above

STIHL products awaiting despatch






28. Is there an opportunity to switch to more efficient vehicles, hybrid vehicles or renewable energy sources for your distribution fleet?

Incoming and outgoing transport is out-sourced.

B-Double trucks are typically used by Toll, IPEC, TNT, etc for which hybrid-powered technology is not yet developed.

29. Do you consider back-loading of used packaging or waste products once deliveries have been made? Can your distribution network aid the recovery of used packaging?

Untenable for out-sourced transport.

Packing materials are recycled wherever possible by Dealers

Design for reuse

30. Have you considered and compared the environmental benefits of reusable packaging with single-use packaging?

There would be no commercial or practical advantage in reusing STIHL product cartons as they are invariably damaged during product extraction.

All materials are recyclable

Sighted evidence at any STIHL Dealer

31. Do you have packaging supply chain confirmation that the package is capable of reuse for the intended application under normal conditions, without risk to the product or to the health and safety of packaging supply chain workers and consumers?

N/a N/a N/a

32. Has the product been designed to maximise the number of return trips/reuse?

N/a N/a N/a

33. Is the packaging format applicable for reconditioning once the packaging has fulfilled its designated purpose? If the product cannot be reconditioned, can the reusable packaging be recycled?

Dealers in metro areas typically recycle plastic wrap and cardboard which is not reusable once removed.






Design for recovery

34. To what extent are the packaging materials collected for recycling in the geographic area in which the product will be sold?

70 - 80% of STIHL Specialist Dealers within metro areas recycle packing materials either on-site or at local Council Recycling Centres

0-10% of Dealers in rural areas are able to recycle packing materials

APC may influence rural councils to establish recycling amenities

35. How much of the packaging is recyclable?

All (100%) STIHL Pty Ltd packaging is recyclable (cardboard & plastic wrap) As above

36. How many materials are being used in this package? If more than one material is used, are the different materials compatible in the recycling process?

1. Plastic wrap – Recyclable

2. Cardboard cartons – Recyclable

3. Plastic strapping - Recyclable

As above

37. Are any materials bonded together and therefore difficult to recycle? If yes, has and alternative format/system been considered?

No bonded materials are used within STIHL packaging

38. Has the packaging been designed to minimise the impacts that any components such as closures, labels, sleeves, carry handles, etc. may have on the recycling process?

No other components are used within STIHL packaging

39. Have you consulted with recyclers or composters (depending on the intended recovery process) to find out whether any components will be problematic in the recovery process or in the end-product?

As above for packaging

End-of-life STIHL products are 100% recycled at Main Warehouse

Nil Recycler’s records / Certificates of Destruction

STIHL spare parts awaiting shipment






40. If compostable materials are being considered, has reference been made to industry standards such as the PACIA’s document; Using Degradable Plastics in Australia – A product stewardship guide and commitment?

Compostable materials are not being considered as all are recyclable / reusable N/a Recycling services reports

41. Is packaging of this type and purpose included in the Australian Council of Recyclers (ACOR) Kerbside recycling specifications? Have these specifications been considered in the packaging design?

STIHL product packaging is of an inappropriate volume for Kerbside collection N/a

42. Have you developed and implemented appropriate labelling on packaging to encourage consumers to recycle or compost?

Consumer does not receive product packaging

Use of Mobius loop on consumable item cartons is currently being investigated

43. Is rigid plastic packaging labelled with PACIA’s plastics identification code?

Rigid plastics are not used within STIHL packaging

However, rigid plastics from damaged / unserviceable STIHL products are recycled

N/a

Design for litter reduction

44. Do you understand where, when and how the product will be used and by whom?

Yes – Forestry / horticultural professionals, municipal councils and households who require powered landscape / garden maintenance equipment

N/a Sales records

45. Is the package likely to be consumed away from home and therefore have the propensity to become litter?

Yes with aftermarket packaging; bubble packs, etc

N/a N/a Recycling symbols / instructions to be used throughout

46. To what extent is this packaging type represented in the litter stream?

Unknown at present N/a N/a






47. How many separate or easily separable components that could end up as litter does the packaging item have (e.g. screw cap lids, peel off seals), and can they be reduced?

N/a N/a N/a

48. Has the package been designed to minimise the number of separate or separable components?

Yes

49. Do you provide advice for consumers on the label to encourage appropriate disposal or recovery?

Consumers do not generally see / receive primary product packaging

50. What steps have you undertaken to reduce the occurrence of your packaging in the litter stream?

N/a N/a N/a

51. Have options been considered for away-from-home recycling as part of an overall littering abatement program?

Unknown, but opportunities do exist for clear markings on aftermarket product packing

N/a N/a

Design

52. Has the consumer’s ability to access the product within the packaging been adequately considered in the design process? For example, has a consumer specialist analysed the actions required to interact with the product?

N/a N/a N/a

53. Have you considered whether the level of information on the packaging ensures the consumer is aware of its contents and how to open the package?

N/a N/a N/a

Boxed STIHL saw-chain and chainsaw bar with typical

packaging despatched with power head






54. Have you considered the demographic of the consumer who will use the product? Are there any limiting factors typically associated with these consumers?

N/a N/a N/a

55. Can changes be made to improve the ability of the consumer to use the product without compromising the safety, security or quality?

N/a N/a N/a

56. To what extent has your company ever received any complaints in relation to accessibility of packaging?

Nil – Products are unpacked by STIHL Dealer

Unwrapped by STIHL Dealer

Unwrapped by STIHL Dealer

57. Could an alternative design be used efficiently to minimise the requirement for tools such as a knife or scissors?

Packaging is designed to be as simple as possible:

Provide consumer information on sustainability

58. What environmental issues have been considered during development of the product’s marketing strategy, for example use of environmental claims, logos and consumer education?

N/a N/a N/a

59. Will any environmental claims be made about the packaging item?

No






60. Has information been used on packaging to encourage recycling for example the Mobius loop (refer to AS/NZS 14021).

Investigations in progress (March, 2011) with STIHL Germany to confirm if the Mobius Loop may be included on STIHL product cartons in future

61. Has plastic packaging been identified with the voluntary Plastics Identification Code which marks plastic containers to identify the plastic resin from which they are made? (Note – The code is not intended to be a guarantee of recycling or to provide companies with a platform for environmental claims. Copies of the Code and Guidelines on its use are available from PACIA)

N/a N/a N/a

62. Has appropriate information in relation to litter prevention been included on all packaging of products likely to be consumed away from home?

N/a N/a N/a

63. If recycling logos are to be used on the packaging, have you identified existing systems that will be able to recycle the packaging?

Investigations in progress (March, 2011) with STIHL Germany to confirm if the Mobius Loop may be included on STIHL product cartons in future.

Enquiries with local suppliers of consumable products cartons are also in progress

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